lk_3000
I was blasting my buddy about that about a year ago, and his response was:
"we are losing about $100 per Xbox, the add on remote is just a way for us to help offset our losses"
I was also giving him crap about the headsets. At the time, you could get a badass Plantronics Cell Phone headset for $20 (which I did) while you had to pay almost $30 for an MS one. His response was also the same.
Sidenote: MS just announced that their game division turned its first quarterly profit q4 2004. My response was go figure, Halo 2 sold over 6 million copies. My take on this is that MS won't turn another profit unless one of 2 things happen:
1) They beat Sony to market with the Xbox2
2) They release a version of Halo every quarter.
